My Maximum Purchase Prices for Dividend-Growth Stocks
I invest with a focus on dividend growth, quality, and attractive valuations. That’s why I set a maximum purchase price for each position based on dividend yield, growth expectations, and my own Margin of Safety (MOS).
I use this overview as a guide to keep emotions out of my buying decisions and to wait patiently for opportunities.
Moat The foundation of the competitive advantage consists of three pillars: High-credit-quality tenants: ~65% of rental income comes from investment-grade retailers such as Walmart, Kroger, and Tractor Supply
Very long-term leases: Terms of 10–20 years with built-in rent escalators create high “switching costs” for tenants
E-commerce-resistant focus: Deliberate concentration on essential sectors such as grocery stores, pharmacies, home improvement stores, and gas stations
